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Whiting Petroleum: Will Its 4Q16 Earnings Be Positive?

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4Q16 earnings release

Whiting Petroleum (WLL) is expected to release its 4Q16 earnings on February 21, 2017, after the markets close.

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Whiting Petroleum’s 4Q16 revenue estimate

Whiting Petroleum’s 4Q16 revenue estimate is higher than the revenue for the previous quarter. For 4Q16, its revenue estimate is ~$345 million. It’s ~18% lower than its 4Q15 revenue.

The above graph shows that Whiting Petroleum’s revenues missed estimates in the previous quarters. Investors will watch to see if the trend continues in 4Q16.

Whiting Petroleum’s 4Q16 EPS estimates

Whiting Petroleum’s 4Q16 loss per share estimate is $0.31. Its 3Q16 loss per share was $0.47. In the same quarter in 2015, the company saw a loss per share of $0.43. Like its revenues, Whiting Petroleum’s earnings performed poorer than expected in previous quarters.

In comparison, Whiting Petroleum’s peer Continental Resources (CLR) is expected to report EPS of -$0.10 in 4Q16. Whiting Petroleum and Continental Resources make up 0.65% of the iShares U.S. Oil & Gas Exploration & Production ETF (IEO).

Key 4Q16 highlights

On November 21, 2016, Whiting Petroleum announced its intention to sell its Bakken midstream assets to an affiliate of Tesoro Logistics Rockies, a subsidiary of Tesoro Logistics (TLLP), for $375 million. Tesoro Logistics is an MLP formed by Tesoro (TSO). Debt reduction, one of Whiting Petroleum’s key strategies last year, could be one of the most advantageous trade-offs Whiting Petroleum sees from its Bakken midstream divestiture. Read How Will the Bakken Divestiture Affect Whiting Petroleum? to learn more.

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